US hospitals typically spend $2,424/day to provide inpatient care, according to the KFF report

How much does the average hospital spend/day to provide inpatient care? The numbers vary widely, but the latest statistics from Kaiser Family Foundation (KFF) State Health Facts show West Coast states incur the highest daily operating and non-operating inpatient costs.

This disparity in spending is unlikely to surprise medical laboratory executives working in hospital settings. They know firsthand that operating costs can vary from state-to-state and by hospital ownership type.

Oregon, California, and Washington are the most expensive
three states overall for inpatient hospital care. However, the leaderboard
changes when looking specifically at inpatient care at for-profit hospitals.

In the for-profit hospital category:

North Dakota, South Dakota, and Alaska rack up
the highest expenses/day.

Idaho, California, and Oregon top the non-profit
hospital segment.

Overall in the US, the average hospital incurs expenses of
$2,424/inpatient day, the KFF reports.

While the average US hospital spends $2,424/day to deliver inpatient care, West Coast states have the highest hospital adjusted operating and non-operating expenses/inpatient day, according to a recent report from the Kaiser Family Foundation. Oregon hospitals top the spending list at $3,599/day. (Graphic copyright: Kaiser Family Foundation.)

AMA Annual Survey
Rankings

Rankings are based on information from the 1999-2017 American Hospital
Association Annual Survey, which includes all operating and non-operating
expenses for registered US community hospitals. The figures are an estimate of
the expenses incurred by a hospital to provide a day of inpatient care. They
have been adjusted higher to reflect an estimate of the volume of outpatient
services, according to the KFF. The numbers do not reflect actual charges or
reimbursement for the care provided.

Most expensive average expenses/inpatient day:

Oregon, $3,599

California, $3,441

Washington, $3,429

Idaho, $3,119

District of Columbia, $3,053

Least expensive average expenses/inpatient day:

Montana, $1,070

Mississippi, $1,349

South Dakota, $1,505

Wyoming, $1,520

Alabama, $1,554

Most expensive non-profit hospitals/inpatient day:

Idaho, $4,208

California, $3,800

Oregon, $3,546

Washington, $3,500

Colorado, $3,319

Least expensive non-profit hospitals/inpatient day:

Mississippi, $1,365

South Dakota, $1,519

Iowa, $1,564

Montana, $1,627

Alabama, $1,723

Most expensive for-profit hospitals/inpatient day:

North Dakota, $4,701

South Dakota, $3,956

Alaska, $3,280

Nebraska, $3,031

Wisconsin, $2,830

Least expensive for-profit hospitals/inpatient day:

Maine, $1,055

Maryland, $1,207

West Virginia, $1,362

Iowa, $1,558

Arkansas, $1,619

Most expensive state/local government hospitals/inpatient
day:

Oregon, $4,062

Connecticut, $3,979

Washington, $3,312

California, $3,217

Utah, $3,038

Least expensive state/local government hospitals/inpatient
day:

Montana, $52

South Dakota, $442

Pennsylvania, $787

Nebraska, $906

Georgia, $917

Some Regions Pay Much
More for Healthcare

The KFF report did not look at whether patients in states
where hospitals incur the highest daily operating and non-operating expenses
also pay the most for hospital services. Hospital charges vary widely, with
many treatments costing far more in some regions than others.

In addition, health bills can vary at different hospitals in
the same city or region. According to Healthcare.gov,
the average total cost of a three-day hospital stay is about $30,000.

Adding to the confusion is the fact that hospital costs,
billed charges, and the amounts paid by patients for services can be distinctly
different amounts. Health insurance companies, for example, negotiate lower
rates with hospitals and health systems for their plan enrollees. While patients
without insurance are billed full price for services based on the hospital’s chargemaster.

Zack Cooper, PhD, Associate Professor of Health Policy and Economics at Yale University, told National Public Radio (NPR) that hospital consolidation is partly to blame for the wide variation in the price of hospital services within states and across the country. He says consolidation has eliminated competition in many markets. “Where one large hospital dominates the markets, that hospital is able to get higher prices,” Cooper maintains. “Hospitals have gotten increasingly powerful over time.” (Photo copyright: Yale University.)

CMS Final Rule
Requires Pricing Transparency

As of Jan. 1, 2019, a new Centers for Medicare and Medicaid Services (CMS) rule went into effect aimed at making hospital pricing more transparent. The CMS is now requiring hospitals to publish chargemaster price lists online, rather than release those numbers to patients upon request.

However, healthcare advocates have questioned the rule’s
impact on transparency. Posted hospital pricing information is often hard to
access and difficult to comprehend. In addition, chargemaster prices typically
do not represent the actual costs passed on to consumers.

“[The chargemaster] is the list price. When you go to buy a car, you have a manufacturer’s suggested retail price. This is basically what [the chargemaster] is,” Medical Contributor Natalie Azar, MD, told NBC News.

“Prevention comes first,” Nechrebecki suggests. “Utilize the
ambulatory care clinics. Go see your doctors and do what they recommend to keep
yourself healthy. Eat well and exercise often. You will prevent many surgeries
and hospitalizations.”